Brazil exports money to Venezuela

Brasilia – In turbulence with the presidential regime Nicolás Maduro Brazil still maintains commercial relations with Venezuela and, this year, it began to export a product much in demand on the other side of the border: money in kind

Brazil prints the bolivars used in the neighboring country, the demand is important, because the value of notes "bottom" face the hyperinflation, which could reach 1 000 000% this year, according to estimates of the International Monetary Fund [FMI]

The production of silver began in 2018, the Casa da Moeda reported. This is not the first time that Brazil prints money for another country. The Mint has already provided ballots to Argentina, Paraguay and Haiti.

Disregarding the changing prices, Venezuelans need more and more money. The Bolivar notes are now the seventh main product exported by Brazil to the neighbor, according to the data of the trade balance. From January to June, cash sales already printed totaled $ 6.8 million, plus $ 4.6 million in paper for printing money.

In March, Maduro announced that the monetary system would be reformed, with the cutting of three zeros of the numbers. Thus, a thousand bolivars would become a bolivar, but with the same value of acquisition. And the currency will have another name: Bolivar sovereign

But inflation is so high that the reduction of three zeros will no longer be enough to put Venezuelan prices into a civilized norm. On Wednesday, Maduro reported that the reform will reduce five zeros. That is, one hundred thousand bolivars will be converted to bolivar.

To show that Venezuela is not alone in the fight against inflation, the government statement informs that Brazil cut three zeros of the currency in 1989, 1992, 1993 and 1994 . "In a decade, Brazil has eliminated a total of 12 zeros from its currency."

In fact, the 1994 reform was not just the cut of three zeros, but the real one, which was worth $ 2,750.00 CR. The Venezuelan government cites other cases in the region, such as Argentina, Colombia and Paraguay.

Relation

"The government never wanted to prevent trade with Venezuela, except for the products intended for repression" Under-Secretary-General for Latin America and the Caribbean d 39; Itamaraty, Paulo Estivallet of Mesquita. "What is surprising is that there is still trade, given their difficulties in paying."

The Vice President of the Brazilian Center for International Relations (Cebri), Ambbadador José Botafogo Gonçalves, said that Brazil is strengthening its economic relations.

The present government has a different attitude and has criticized Nicolás Maduro's regime regarding respect for human rights and democratic principles. "But the economic ties were created and did not break," he said. "In addition, the concern is to meet the needs of the Venezuelan population."

Trade in decline

Trade between Brazil and Venezuela was already strong, stimulated by petroleum products, on the one hand, and industrialized, on the other hand. In 2012, trade flows, as a result of the sum of imports and exports, exceeded US $ 6 billion.

Values ​​declined, however, as the financial crisis worsened. Last year, total imports and exports totaled 861 million US dollars. This year, until June, it was $ 431 million. The information comes from the journal O Estado de S. Paulo